Malaysia currently faces a significant digital skills gap limiting its technological and economic progress. A digital skill gap is present when there is a need for more technologically skilled employees who can utilise the latest technological advancement. This is highlighted by the alarming statistic that eight out of ten emerging jobs demand technological competencies.
Despite its potential as a regional leader in digital innovation, Malaysia has dropped to 79th in global rankings for digital skills. Compared to their neighbour Singapore which is ranked 12th in the global rankings, this explains the disparity between Singapore and Malaysia’s strength in economy and technological prowess. Singapore with its highly educated and skilled workforce are able to effectively utilise newer technology to achieve optimal outcomes with their businesses and infrastructure.
Therefore, this shortfall has caused Malaysia to lag compared to other countries, underscoring the urgent need for targeted educational initiatives and corporate training programs to equip the workforce with essential tech skills. Bridging this gap is crucial for enhancing employability and ensuring that Malaysia can compete effectively in an increasingly digital economy. Addressing these challenges will foster sustainable growth and economic resilience.
The question is: Why is there a digital skill gap in Malaysia?
Mismanagement of resources and insufficient training
In Malaysia, there is a shortage of higher education in terms of technological skill development. This is evident in the study done by PwC, where 78 per cent of Malaysians have a lack of access to technology to up-skill their technology prowess. There is also the battle of quality vs quantity, where Malaysian training centres have led to a focus on quantity rather than the quality of education. This can be seen in educational institutions across the country.
The prioritisation of quantity causes incomprehensive results as they lack the practical handiwork as compared to quality tutorage. Additionally, there is a lack of standardised assessment, often leading to employers questioning the credibility of certifications from less recognised institutions.
In a survey conducted by Talentbank, their study concluded that 91.91 per cent of employers would choose a good attitude over their academic certificates. This is also supported by the Ministry of Education (MOE)’s finding that 20 per cent of fresh graduates are unable to find a job within six months of graduation due to them lacking the skills, knowledge and attitudes that employers look for.
While there are still shortcomings due to issues in training, this could have been indirectly attributed to the fact that there is a mismanagement of resources towards proper up-skilling.
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Funding for digital skills training is often concentrated in urban areas where institutions are better equipped and more likely to attract investment. In contrast, rural regions may lack even basic infrastructure for digital education, creating a significant talent pool that remains untapped. This geographical disparity leads to uneven skill development and exacerbates existing inequalities in the job market.
Furthermore, many training initiatives face bureaucratic hurdles that hinder their effectiveness. For instance, lengthy approval processes for new programs can delay the launch of essential training opportunities, leaving potential learners waiting for access to necessary skills.
The concerning speed of technological advancement
The speed of technological advancement is one of the pivotal factors of why a digital skill gap exists in Malaysia. Unlike in the past when technology growth was significantly slower, we now experience incredibly rapid technological change. For recent generations, it was typical for technologies that seemed impossible in their youth to become commonplace later on.
Technology advancements are not exclusive towards specific industries but rather are spanning out, transforming various other sectors and industries that require a more tech-savvy workforce. Industries like manufacturing and finance have shifted towards digital technology, requiring AI, Internet of Things (IoT) and also blockchain technology.
The extremities of technological advancement, have caused several implications on society that cause them the inability to keep up with the growth. One of these implications is the necessity of evolution within current job roles. As industries adopt advanced technologies like artificial intelligence, machine learning, and automation, job roles evolve significantly.
For instance, positions in data analysis and software development have surged, while traditional roles in manual labour or basic administrative tasks may diminish. Workers are often left scrambling to acquire new skills that didn’t exist a few years ago, leading to a skills mismatch.
The rise of niche roles, such as cybersecurity specialists or cloud computing experts, underscores the need for specialised training. Many workers find themselves unprepared for these roles due to the lack of relevant training programs that focus on these emerging fields.
Malaysia, as a country, is considered multi-ethnic, with different cultures intertwined forming the Malaysian culture. However, as an Asian country, our mindset is very different as opposed to the open-minded West. Our unwillingness and reluctance to attempt new things pose a barrier to technology adoption. This is evident, especially in countries that put a great deal of emphasis on investing in technology and up-skilling to be efficient with the latest technologies.
In comparison to the competitors in the global landscape, Malaysia is still far behind in true technology adoption and the proper incorporation of its tools into the workforce. technology adoption. This is evident, especially in countries that put a great deal of emphasis on investing in technology and upskilling to be efficient with the latest technologies. In comparison to the competitors in the global landscape, Malaysia is still far behind in true technology adoption and the proper incorporation of its tools into the workforce.
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Adapting to rapid technological advancements often requires a significant shift in mindset. Individuals accustomed to traditional ways of working may resist adopting new technologies, fearing that they may not understand or be able to use them effectively. This reluctance can hinder the integration of new tools and practices in workplaces.
Addressing the concerns and issues
In the end, these factors all contribute to the major issue at hand. The lack of workforce readiness to adapt to technological advancements. Fret not, there are multiple solutions that businesses and government bodies can take to improve the current situation.
Firstly, government bodies should look to collaborate with industry leaders to design curricula that can reflect current and potential job market needs, ensuring that the training programs stay relevant and up-to-date. Adding on, these curricula should also include courses on emerging technologies including blockchain and data analytics in educational institutions to provide students with the skills needed for in-demand jobs.
Resources should also be targeted accurately. Direct funding toward regions and institutions that have been historically underserved in digital skills training, ensuring equitable access to resources. With these resources in place, a formulation of an advisory board between industry leaders would be able to guide training programs necessary to ensure that future employees can meet workforce needs.
However, there are several ways to address the rapidly changing skill requirements, as well as the generational gap. Businesses can collaborate with the government to develop and promote certification programs in high-demand fields such as data science, cybersecurity, and digital marketing to provide workers with recognised credentials.
One of the targets that the business should incorporate in their practices is to up-skill their employees by organising intensive boot camp-style training sessions focused on specific skills or technologies, allowing workers to quickly acquire relevant competencies.
To change, the business must first change its inner workplace culture. By fostering a workplace culture that embraces experimentation and learning from failures. This helps encourage employees to view challenges as opportunities for growth. Naturally, this opens up potential peer-to-peer learning sessions where younger, tech-savvy employees can share knowledge and skills with older colleagues, bridging the generational divide.
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